Color Screens To Drive Wireless Content14 Jan, 2003 By: Hive News
While the limits of a text-only, black and white screen have made content providers reluctant to venture into wireless portable entertainment, a new wave of wireless, color-screen devices due this year will create new opportunities, according to a new report from analyst firm the Yankee Group.
Though text messaging caught on like wildfire in Europe, it's still struggling to reach a critical mass of U.S. customers.
When more people adopt multimedia devices, some media and entertainment companies will be better positioned to make money because carriers have been willing to compensate them in advertising deals in exchange for wireless content, the report says.
Early movers like Disney and ESPN will be able to take their investments in the rudimentary wireless Internet to deliver games and multimedia entertainment to a new generation of wireless devices.
The report, Media Giants Discover Wireless, in Color, gives advice to carriers, concluding that they should focus their efforts on sharing the premium charge for low-bandwidth applications, like ring tones and simple graphics. Heavy content (like MP3s and streaming video) is good for carriers, even if they do not share in the revenues paid explicitly for the content.
"Carriers will not earn a single euro-cent if they charge for ring tones or simple graphics by the byte," Said report author Adam Zawel, Yankee Group Wireless/Mobile Enterprise & Commerce director. "It is essential that they develop infrastructures that allow them to add value to low-volume data transactions."